The chairman of Starwood Capital Group, billionaire Barry Sternlicht, has shared his view on how bitcoin could grow to be worth a million dollars a coin. He calls the cryptocurrency a â€œsmartâ€ hedge in a world where the government just keeps on printing money.
Billionaire Barry Sternlicht Believes Bitcoin Could Rise to $1 Million per Coin
Billionaire Barry Sternlicht, the chairman of Starwood Capital Group, talked about the future outlook for cryptocurrencies, particularly bitcoin, Friday while speaking at a Bloomberg event in Miami.
Sternlicht runs Starwood Capital Group, a private equity firm that specializes in real estate investments. The firm has about $100 billion under management in real estate, debt, and energy assets. According to Forbesâ€™ list of billionaires, his current net worth is $4.2 billion.
Noting that he has called his bitcoin position a â€œgreat hedge,â€ the billionaire was asked, â€œIs that how we all should be thinking?â€ Sternlicht firmly replied, â€œYes.â€
He explained that we live â€œIn a world where the government just prints money, and prints money, and prints money, and prints money, and doesnâ€™t seem to have any consequences.â€ Noting that â€œSometimes, that will end,â€ the billionaire stressed:
The only thing that they canâ€™t make more of is bitcoin.
He added that bitcoin has â€œnever been hacked,â€ but noted that â€œIt has no real value other than thereâ€™s 21 million coinsâ€ that are â€œinfinitely divisible.â€
In comparison, he pointed out that gold also â€œreally doesnâ€™t have a lot of value,â€ adding that â€œYou can have your gold jewelry but it could be silver or titanium or platinum.â€
Sternlicht opined: â€œYou could see the world saying to the U.S., especially with our political isolationism, they would say China is going to try to knock us off the dollar standard, and they are going to have a lot of countries aligned with them.â€
The Starwood Capital executive emphasized: â€œThey are going to try really hard. Itâ€™s very obvious. They are going to try really hard to break the dollar standard. If that happens and the dollar devalues, you need one thing that could hold its value.â€
While admitting that bitcoin â€œwill go down with the stock market,â€ he stressed that in his opinion, â€œit will reverse,â€ elaborating:
It would go to $1 million a coin. It could do that because everyone, itâ€™s not U.S. investors, the whole world will look at one thing that they canâ€™t make more of and that would be bitcoin.
â€œThereâ€™s no function other than a store of value so having a little investment in bitcoin, I think, might be a smart little hedge in your life because your paper will be worthless, unfortunately,â€ he warned.
The billionaire then disclosed that he has about 2% to 3% of his net worth in cryptocurrencies. Regarding crypto investment, he said: â€œIf it goes to zero, it wonâ€™t hurt me either, it wonâ€™t hurt you.â€ However, he emphasized:
But if it goes to $1 million a coin, you are going to look at the TV and get very upset.
A growing number of billionaires are using bitcoin to hedge against inflation.
Famed hedge fund manager Paul Tudor Jones said in October that he preferred bitcoin over gold. Orlando Bravo, the billionaire who co-founded private equity firm Thoma Bravo, said in September that he is very bullish about bitcoin, expecting it to increase â€œsignificantly.â€
Last week, Mexican billionaire Ricardo Salinas Pliego said the U.S. â€œis looking more and more like any other irresponsible third world country.â€ Salinas tweeted a weekly chart of the total value of the Federal Reserveâ€™s assets (less eliminations from consolidation) and commented: â€œWowâ€¦look at the scale of fake money creation. Buy bitcoin right now.â€
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